The Pattern of Industrial Colonialism

Chapter Summary

Capitalism in Latin America first emerged and expanded through outward-oriented growth. This was the form of growth through which industrial colonialism was introduced. The 1930s witnessed in several countries the first transition from this form of growth to the inward-oriented variety on account of two historical conditions; (i) the existence of a domestic market that spontaneously arose out of exports, and (ii) the region's relative isolation from developed countries as a result of the Great Depression and World War II. Any pattern of industrial colonialism, as well as any form of growth, displays in a specific manner the tendencies that correspond to underdeveloped economies. Neo-liberalism reinforces industrial colonialism and imperialism and this is one of the most salient effects of the so-called "free play of the market forces". Under the previous pattern of industrial colonialism, foreign capital mainly penetrated into the region through fusions with local capitalists and states.

Keywords: Capitalism; developed countries; domestic market; Great Depression; industrial colonialism; Latin America; Neo-liberalism; underdeveloped economies; World War II